Many moons ago, I was a total financial disaster. I didn’t even have $10 to my name and I had no idea how to save money. It wasn’t until I was in a relationship, my girlfriend at the time bought me all these things and I couldn’t even afford to pay for her lunch.
Later that day, I made the decision that I would never depend on my girlfriend ever again. I never wanted to have the feeling of being broke all the time and to depend on other people. Borrowing money just seems to be the ultimate insult to myself. Not saying that anyone who borrows money is an insult but it’s just against my core values.
Within a few years of making the decision to turn my finances around, I managed to save up enough money to buy my own house. I also had enough to fly around the world and also invest in a publisher to publish my book.
It was all because of that one defining moment to manage my finances. If it wasn’t for that pain and frustration, I don’t think I’ll get to where I am today.
So how did I do it? Here’s how.
Whenever I would receive money, I would immediately move 10% of what I earned into a separate envelope. So if I were to make $100, I would save $10. Over time, I would have a few hundred dollars in my bank and it would just blow my mind. One day my bank account reached $1,000 and I felt super rich!
The one thing I learned from this experience is to not focus on the amount itself. Never do this for it will discourage you if you’re only putting away a few bucks. The habit is the ultimate key behind all this for it seems that if you build this valuable habit of saving money, more money seems to flow to you.
I’ve also discovered that as you build this powerful habit of saving money, it seems as if you prove yourself to the universe and it blesses you with more opportunities and money to manage.
One of the reasons why people lose all their money when they win the lottery is because they never built the habit of managing their finances. They blow all their money away on liabilities and over time, they bury themselves in debt with their wallet.
However the ones who have mastered the art of managing their finances have paid the price and are given great wealth to manage and prosper from.
If there was one thing I would share with you from this article it would be this. Pay yourself first. When you get your pay cheque, move a certain amount from that pay cheque into a sacred account that you can’t touch. Do this immediately. Don’t pay the bills or anything else first.
Pay yourself first.
If you don’t pay yourself first, you’ll come up with excuses and your own emergencies to use your money. Don’t do this. Avoid it by paying yourself first and don’t touch your bank account.
Finally I would like to say this. One you get the hang of paying yourself first, you’ll notice that over time, your bank account will build into a massive fortune. However, be warned that the hard discipline of saving isn’t the most difficult part of your financial journey.
It’s holding onto your money when you have a ton of it. Trust me. When you look at your bank account and see how much money you have there, your mind starts to play tricks on you. You start telling yourself “wow I can actually buy that convertible in cash. Maybe I should do it, after all I worked so hard for my money etc” or “I can fly anywhere I want around the world and take a year off, life is too short, yolo man!”.
However, if you make it to that second phase of toughness where you’re sitting on a pile of cash, keep sitting. Wait for that golden opportunity, the one that is a sure thing and go all in.
Stay Strong and Be Relentless.